Problem 13-24 (Algo) Activity-based costing versus traditional overhead allocation methods LO 13-9 Woodland Industries manufactures and sells custom-made windows Itsjob costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufacturing overhead cost drivers (activities). Assume that the direct labor rate is $18 per hour and that there were no beginning inventories. The following information was available for 2022, based on an expected production level of 50,200 units for the year, which will require 200,800 direct labor hours: Budgeted Costs for Cost Driver Used as Activity Cost Driver 2022 Allocation Base Cost Allocation Rate Materials handling :5 225,900 Number of parts used 1; 0.18 per part Cutting and lathe work 1,882,500 Number of parts used 1.70 per part Assembly and inspection 4,417,600 Direct labor hours 22.00 per hour The following production, costs, and activities occurred during the month of July: Direct Materials Number of Parts Units Produced Costs Used Direct Labor Hours 3,500 $ 131,500 77mm 14,700 Required: a. Calculate the total manufacturing costs and the cost per unit ofthe windows produced during the month ofJuIy (using the activity- based costing approach), Note: Round "Cost per unit produced" to 2 decimal places. Do not round intermediate calculations. b. Assume instead that Woodland Industries applies manufacturing overhead on a direct labor hours basis (rather than using the activityrbased costing system previously described). Calculate the total manufacturing cost and the cost per unit of the windows produced during the month ofJuIy, (Hint: You will need to calculate the predetermined overhead application rate using the total budgeted overhead costs for 2022,) Note: Round "Cost per unit produced" to 2 decimal places. Do not round intermediate calculations. c. Which approach do you think provides better information for manufacturing managers? a. Total manufacturing cost a. Cost per unit produced b. Total manufacturing cost b. Cost per unit produced c. Approach that provides better information